Feb 7, 2012

Saving for a House

If you are working towards buying a home, but are not even close to footing the removalists’ fees to move in, there are a few things you can do to speed-up the saving process.Purchasing a new home is not an off-the-cuff-decision. It’s something that, for most people, is several years in the making. You don’t simply walk into a store and sign-up to repaying a kit home do you? Well, most people don’t. Most people plan ahead – working to save the biggest down payment they can.

Not good at saving?Live by these tips.

Savings tip # 1: Consolidate, consolidate, consolidate!Get on the phone and on the internet to find the best possible deal for all your debt, whether it be credit cards or personal loans. There are great deals to be had including balance transfers or long-term repayment options. In some cases, simply putting all of your debt into one place and creating a repayment plan is all you need to give you the kickstart your finances need.

Savings tip # 2: Your junk could be someone else’s treasure.Ever perused through the racks at St Vincent de Paul’s and found a steal? Someone might feel the same about your pre-loved items so why not put on your own garage sale or sell your items over eBay. You will be surprised by how much money you can earn by simply decluttering your lifestyle and your home.

Savings tip #3: Apply for a high-yield savings account.Boost your savings and reach your goals faster by putting all of your savings into a high interest-incurring bank account.

Savings tip # 4: Supplement your income.If you need more money, why not find it in a new job – consider ways that you can make more money so that you put more towards your down payment. It may mean finding a part-time job in addition to your current position, but it will be worth it if you can reach your goal faster.

Savings tip # 5: Watch what you spend.Achieving your goal may mean that you need to change your lifestyle temporarily. You may need to eat in more, stop shopping so much or limit your partying. Whatever the sacrifices are, remember that you are working towards strengthening your financial position and your personal equity.

In addition to this, one of the most important things you can do to get your finances in order is to write a personal budget and incorporate your financial goals into it. When incorporating your goals into your budget you should figure out how many months you will need to save to reach that goal. In the case of a home, it might be better to set yourself small wins i.e. a small treat for every $5,000 you save. With these tips you should be well on your way to reach your goal of a buying a new home.